reported from the source

Quick summary: Micron’s stock increased nearly 8% following strong earnings from Taiwan Semiconductor Manufacturing Co., indicating ongoing AI infrastructure investment. The company plans to invest $200 billion to expand production capacity in the U.S.

Micron stock rose nearly 8% on Friday as investors sought to purchase AI chip supply chain stocks after Taiwan Semiconductor Manufacturing Co. reported robust earnings on Thursday, signaling continued AI infrastructure spending. Shares of Micron, a manufacturer of memory and storage for artificial intelligence systems, have increased over 250% over the past year due to a worldwide shortage and a surge in demand for memory. Memory is essential in AI systems to keep large amounts of data close to the graphics processing unit (GPU), enabling the operation of large AI models without delays. Micron CEO Sanjay Mehrotra stated, ‘AI driven-demand is accelerating. It is real. It is here, and we need more and more memory to address that demand.’ He mentioned that Micron is investing $200 billion to enhance production capacity in the U.S., which includes two fabrication plants in Idaho and a 600,000-foot facility in Clay, New York, where the company recently broke ground. Commerce Secretary Howard Lutnick attended the groundbreaking event, and Micron announced it would invest $100 billion in that facility. Mehrotra noted that it would take several years to complete the facilities, including clean rooms and production equipment. In early 2025, Micron anticipated a 10% growth for server memory, but that growth turned out to be in the ‘high teens’ by the year’s end. The company also reported stronger-than-expected growth in memory and storage for PCs. Mehrotra indicated that the tightness in memory supply is expected to continue into 2027, suggesting durable industry fundamentals driven by AI demand. The rush to meet the memory needs of companies like Nvidia, Advanced Micro Devices, and Google has resulted in a shortage, with prices for this critical component projected to rise by an estimated 55% in the first quarter.

Source: www.cnbc.com